Different styles of Trading
If you are trading or planning to start trading, then you should be aware of the types of trading that you can do in the stock markets:
Intraday Trading- this is a type of trading in which you enter and exit a trade within the same day. For example, the market hours are between 9:15 AM to 3:30 AM and if you take a trade @ 10 AM then you have to square off your position before 3:30 AM (some brokers give up to 3:15 AM) otherwise your positions will be automatically squared off by the brokers following up with a penalty amount that will be included in your brokerage contract receipt.
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Note: you can convert your intraday order to more than one day provided you have sufficient capital.
Swing Trading- This is a style of trading where the traders hold their trades for more than one day and square off their positions after a few weeks or months. It requires more capital because leverage is not provided in swing trading.
Positional trading- this is not considered as trading, it is well known as investing and the people who opt for this style are not traders but investors. So in positional trading, an investor holds their trade up to several months in some cases even several years. This also requires a huge amount of capital. Generally, this type of trade is taken basically on the fundamentals of the company that includes analyzing the balance sheet, profits of all the quarters, calculating different ratios, etc.